1. Field of the Invention
The present invention relates to a method and system for intelligent automated security trading via the wireless Internet by executing investor's custom developed investment strategy algorithms. More particularly, the present invention provides an electronic commerce automated trading service center to empower investors to remotely control their personal Virtual Fund Manager systems to pursue the automated security trading in real time.
2. Description of Related Art
Trading securities, such as stocks, futures, options, bonds, and foreign currencies, has been always a time consuming process for investors. It takes long time to perform non-stop monitoring of the market fluctuation. Also, at the time the desired Buy/Sell point is occurring, the investor must make immediate decision to execute the order. Therefore, a busy investor rarely has the opportunity to personally handle securities during trading hours. A lot of high pay incomers are reluctant to invest in stock market simply because of this reason. Even professional traders who may dedicate to handle security trading in full time, there are still obvious constraint for them to handle huge amount of securities concurrently due to the limitation of manual manipulation capabilities. Besides, there are situations where investors may miss profit taking opportunity when taking a vacation, or make opposite decision at critical moment due to psychological effect.
Thus, an intelligent automated trading system that can restlessly execute investors' desired investment strategy anytime anywhere is needed to relieve the tremendous working load of timing critical security trading, just like how robot is needed to replace human's routine works. To build an effective automated trading system, a well established technology infrastructure is needed, including real time electronic security exchange service, on-line security brokers, wireless broadband Internet, and powerful computers for real time data processing and computation.
It has been many years since on-line trading was available for investors to trade securities via the Internet. Initially, it means that an investor can send message of his investment decisions via e-mail to his security broker for further processing. Later, the on-line broker provided user friendly system for investors to retrieve quote and place orders by clicking menu driven interface. However, the capability of electronic security exchange service has been a bottleneck to build an effective automated trading system running in real time. One typical problem for electronic security exchange service is how to quote the price instantly, including bid, ask, and trading price, in a correct sequence, at a correct timing, based on the trading report issued by various sources located at numerous locations. If the discrepancy of the quotation provided by a security exchange is too big relative to what is actually happening in real time, all the subsequent automated monitoring, calculation, decision and execution effort would become meaningless. Especially, for active day traders, few seconds of delay, or incorrect sequenced quote could mean a substantial damage to the trading results.
Any previous attempt to develop an automated trading system within the technological constraint of electronic security exchange service must ignore the potential inaccuracy quoting within seconds, and thus can work at most on a slower motion type of decision making process. For example, it may adopt an investment strategy to buy a particular stock, and hold it for couple hours, or even days, until it appreciates 3% for ultimate liquidation automatically. This is not sophisticated enough to be characterized as a real time processing.
As NASDAQ upgrades to the highly transparent SuperMontage trading platform, where quotes and orders go through a single-computer architecture for true real time processing, it becomes feasible to develop an intelligent automated security trading system to benefit day traders in particular where intensive real time day trade capability is an essential requirement, and any other typical investors in general where timing critical judgment capability is always an essential element to enhance the profit. The same architecture of such intelligent automated stock trading system can also be adapted to any other electronic security exchange services who offer trading technologies comparable to NASDAQ SuperMontage level.
The present invention provides a method and system for intelligent automated security trading via the wireless Internet to perform real time execution to trade securities automatically at any electronic security exchange with real time centralized quoting capabilities similar to what NASDAQ SuperMontage is offering.